Policy support, volume growth: What's lifting the spirits of liquor stocks?

The change in duty structure and new tax policy of FY23 is expected to bring a much awaited relief for alcohol beverage industry. However, analysts believe barley price rise to act as a spoilsport.

Shares of alcoholic beverages were in high demand in the financial year 2021-2022 (FY22) despite disruptions led by Covid-19. Globus Spirits drove the spirits' pack as it delivered over 350 per cent returns during the period.

Among other stocks, Som distilleries zoomed 58.29 per cent, Globus Spirits 13.34 per cent, IFB Agro Industries 6.32 per cent and United Spirits moved up 0.93 per cent. In comparison, S&P BSE Sensex gained 2.46 per cent whereas S&P BSE 500 climbed 1.05 per cent this year.

Going forward, analysts expect the revival in economic activity and near normalization in on-trade establishments to buoy